Federal investigators are investigating business card sales practices at American Express Co., according to people familiar with the matter.
The general offices of Treasury Department inspectors, Federal Deposit Insurance Corp. and the Federal Reserve are investigating whether AmEx used aggressive and deceptive sales tactics to sell cards to business owners and whether customers were harmed, people said. They are also examining whether specific employees contributed to the alleged behavior and whether senior officials supported it, some people said.
Moeda’s Controllership is also investigating AmEx’s business card sales practices, according to people familiar with the matter.
More than a dozen current and former AmEx employees have previously told The Wall Street Journal that some salespeople have prepared or tricked small business owners to apply for cards to increase sales figures. Some vendors misrepresented the card’s rewards and fees or issued cards that customers had not sought, they said. An AmEx spokesman said at the time that the company had encountered only a very small number of problems, which were resolved “promptly and appropriately”, including through disciplinary action.
“We have robust compliance policies and controls in place and we do not tolerate misconduct,” said an AmEx spokeswoman this week.